Regional Development Minister Jaala Pulford said $11.8 million would go towards extending a grants program beyond Gippsland, where drought conditions had been previously recognised, to municipalities across northern and western Victoria.

Ms Pulford said farmers could apply for grants of up to $5,000 to help drought-proof their land.

"It's really about helping our farms to be as prepared and as resilient as they can be for what is an increasingly challenging operating environment," she said.

Almost $9 million was allocated for families living in the Gippsland local government areas of Wellington Shire and East Gippsland Shire for school-related support such as excursions and kindergarten fees.

Ms Pulford said there was $2 million for mental health and wellbeing services, and the Government would also support local businesses.

"Our small business community is, in rural Victoria, very intimately related to the wellbeing of our farming communities," she said.

"And where farming communities are experiencing hardships, then so too are many of the small businesses that work so closely with them."

Farmers' lobby group wants more

The Victorian Farmers Federation (VFF) welcomed the Government's expanded relief arrangements, but said it would continue to demand more Government action ahead of the November state election.

"The VFF has been lobbying behind the scenes for some months given worsening drought conditions confronting farmers, and welcomes the announcement of additional measures which may provide some relief for communities," president David Jochinke said.

Dry dams are a common sight in East Gippsland and increasingly across northern Victoria.

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Mr Jochinke said the Government must ensure the grants would be adequate to offer genuine relief from drought, while promoting long-term preparedness and resilience.

"To be frank, when farmers are looking at failed crops and paying thousands of dollars to buy feed for animals, a $1,000 infrastructure grant and the time and paperwork it takes to secure it may not be meaningful for effective change," he said.

The VFF also called on the Government to subsidise Local Government rates, saying some councils had increased their farm rates bills by as much as 20 to 50 per cent.

Ms Pulford did not rule out providing rate relief in the future, but said evidence showed it tended not to work as a measure to help farmers recover from the impact of drought.

"We follow a really clear set of guidelines about what is the most effective thing to do at which particular point in time that's going to support people through drought, but is also going to recognise that the best thing governments can do for people experiencing drought is help them prepare for the next one," Ms Pulford said.

White-crowned sparrows exposed to small doses of a common neonicotinoid insecticide used in agriculture rapidly shed significant amounts of fat and spent days recovering before rejoining their migration, a study has found.